NEW YORK, NY January 07, 2009 —Governor Paterson says the state of New York State is "perilous," but he says a new set of priorities -- and the courage to balance a budget with a $15 billion deficit -- could create a "brighter, smarter future."

Paterson says some 225,000 New Yorkers could lose their jobs before the recession is over, and he wants to make sure they don't lose their health insurance. He says the state would try to insure almost a quarter of a million more people through Medicaid, with federal assistance.

PATERSON: We will do it by asking the federal government to give us a waiver, so that we can access savings from our Medicaid program and devote them to that purpose.

REPORTER: Paterson also says the state would work with private insurers to cover young adults, ages 19-to-29, who represent a third of the uninsured. And he pledges to improve health by expanding New York City's trans fat ban in restaurants state-wide and by placing a sugar tax on sodas. He also wants to set up a consortium upstate to develop hybrid electric batteries.